Trakopolis entered into an agreement for $3 million secured credit facility with ESW Holdings. The facility consists of a 12-month term loan bearing interest at an annual rate of U.S. prime plus 4.5%.
In accordance with the terms of the loan, the company is not required to make any interest or principal payments until the term loans’ maturity date.
Trakopolis will use the proceeds to pay out its existing indebtedness to Silicon Valley Bank and to fund certain lender expenses in accordance with the terms of the loan. Any remaining funds will be used for general working capital purposes.
As consideration for providing the loan, ESW will receive 1,307,620 Trakopolis bonus warrants. Each bonus warrant will be exercisable into one common share of Trakopolis at an exercise price of CDN$0.34 per bonus share. The bonus warrants will expire five years from the date of the term loan and will be subject to an initial four-month-plus-one-day hold period from the date of issuance of the bonus warrants.
In the event of an acquisition, the company has agreed to acquire all of the bonus warrants from the lender at a price to be determined based on the terms of the acquisition.
“We welcome the financial backing of ESW as we continue to grow our customer and subscriber base,” said Trakopolis CFO Richard Clarke.
Trakopolis is an SaaS company with proprietary, cloud-based solutions for real-time tracking, data analysis and management of corporate assets such as equipment, devices, vehicles and workers.
ESW Holdings focuses exclusively on investing in, strengthening and growing mature business and enterprise software companies across the globe.
